1. Mahindra & Mahindra Financial Services: This NBFC has risen 5.7% over the past week after posting strong numbers in its business update for Q4FY23 and FY23. This helped the company show up in a screener of stocks with high volume and high gain.

In Q4FY23, the company’s loan disbursements rose by 50% YoY to Rs 13,750 crore, while FY23 overall saw a jump of 80% YoY Trendlyne’s forecaster estimates the company’s revenue and EPS to grow by 9.6% and 46.5% respectively in FY23.

The firm’s continued momentum in loan disbursements, improving asset quality and strong collection efficiency are the key drivers for its growth. According to Motilal Oswal, various strategic initiatives like changes in top-level management and improving loan recollection processes have the potential to yield a strong operational performance if executed well. The brokerage maintains its ‘Buy’ rating on the stock, with a target price of Rs 285 per share, indicating a potential upside of 22.8%. It also estimates the lender’s assets under management (AUM) to grow at a CAGR of 18% over FY23-25.

Recently, the company reached a 52-week high of Rs 272 on February 10, putting it in a screener of stocks with high momentum scores. The stock is currently trading 49.1% higher than its 52-week low of Rs 160.6 per share. 

2. Bajaj Auto: This auto stock's two-wheeler domestic wholesales have risen 42% YoY to 1.5 lakh units in March, while commercial vehicles (CV) saw a surge in domestic wholesales by 74%. However, exports in both segments fell by more than 30%, resulting in a 2% YoY decline in total wholesales (both two-wheeler and CV).
   Recently Bajaj Auto also announced production cuts due to a weak export market, with expectations of a recovery only by Q2FY24. Despite this, the stock has gone up by nearly 12% in the past three months.

According to ICRA, the commercial vehicles segment is likely to see a growth of 7-10% in FY24. The demand in segments like passenger vehicles, commercial vehicles and tractors will remain healthy and intact, which bodes well for Bajaj Auto, despite a decline in exports.

On a positive note, Bajaj Auto is set to enter the electric vehicles segment in both the cargo and passenger vehicle markets. In fact, the company is preparing to launch its three-wheeler electric vehicle in April. With a 76% market share in three-wheelers, Bajaj Auto would compete with Mahindra & Mahindra, which currently leads the market in the three-wheeler electric segment.

In the past week, the stock has risen 5.6% and is currently trading near its 52-week high. It shows up in a screener of stocks with high momentum scores. According to Trendlyne’s Forecaster, the consensus for the stock from 23 analysts is ‘Buy’. The company is set to announce its Q4FY23 results on April 25.

3. Maruti Suzuki: This automobile manufacturer rose 2.5% on Monday despite reporting a marginal decline of 0.2% YoY in its total domestic sales to 1.7 lakh units in March. The rise in share price is possibly due to the company hiking prices for all its models for a second time in 2023, to partially offset the impact of inflationary pressures and regulatory requirements.

Although Maruti Suzuki saw a fall in domestic sales, its exports increased 14% YoY in March. The company has shipped over 25 lakh units overseas since it started exports. The automaker exports to nearly 100 countries, including Africa, the Middle East, Latin America and Asia. However, the company’s management has pointed out that a shortage of electronic components affected production volumes in FY23, and expects the problem to persist in FY24. Despite this, the auto giant reported its highest-ever wholesales of 19.7 lakh units, up by 19% YoY, in FY23.

Analysts have a positive outlook on the company as they believe it is focused on expanding its presence in the SUV segment to drive revenue growth. According to Trendlyne’s Forecaster, the consensus recommendation for the stock from 41 analysts is ‘Buy’. The company features in a screener of stocks where brokers have upgraded their recommendations or target prices in the past three months.

4. Godrej Consumer Products: This FMCG company released its Q4FY23 business update on Wednesday, forecasting healthy double-digit volume growth in its India business. The firm’s volume growth in Q3 in comparison, was only 3% YoY. Domestic business contributes over 55% of the company’s consolidated revenue. The management expects broad-based growth in Q4, led by the home care and personal care segments.

The company introduced value products at lower price points across its product portfolios like household insecticides and personal care, amid a sluggish environment in the FMCG sector due to muted rural demand.  This has aided higher market penetration in India, improving the company's volumes. According to reports, the company has gained market share in the hair colour segment after introducing products starting from Rs 15.

The stock has grown 5.8% over the past 90 days till Wednesday, outperforming the FMCG sector by 8.3 percentage points. The stock shows up in a screener for companies with improving cash flows and high durability scores.

Motilal Oswal expects the company to benefit significantly from the recent decline in palm oil prices, which could result in improved profitability in the coming quarters. The management also echoes this sentiment, as it believes that the decrease in input costs will allow it to raise marketing investments in the near to midterm.

5. HDFC Bank: This bank rose 2.6% in trade on Wednesday following the release of its business update on Monday after market hours. The company reported that its advances grew 17% YoY to 16 lakh crore in Q4FY23. The growth was led by retail, commercial & rural loans, which rose by more than 20%. Corporate and other wholesale loans grew by 12.5% in Q4.

The bank’s deposits also rose 21% YoY to Rs 18.8 lakh crore, led by a 23.5% increase in retail deposits. This is higher than the industry growth rate of 10%, according to reports. Analysts suggest that HDFC Bank’s market share in deposits at the end of FY23 would stand at 20%, up from 19% as of 9MFY23, which is positive news for the bank.

The bank also purchased loans worth Rs 9,340 crore in Q4, through a direct assignment route under the home loan arrangement with HDFC. This is a lower-cost route of obtaining funds for the bank. It remains to be seen how the bank’s low cost of funds and high advances growth will impact its margins.

The stock is up 5.5% in the past week, ahead of its Q4FY23 results on April 15. It has also outperformed its sector by 9.8% in the past 90 days. However, Trendlyne’s Forecaster estimates a 0.9% fall in net profit estimates in Q4FY23. 

Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.